Taxable Equivalent Yield  

Municipal bonds are sold by cities, counties, states and other political bodies (public hospital, school district).

The federal government and its agencies do not sell municipal bonds. However, most municipals are free of federal taxes. Because of this, the stated interest rate on municipals is typically lower than comparable non tax-exempt bonds.

How much would you have to receive from a taxable bond to realize an equivalent yield? You can find the answer by entering the following information:

     

What is your federal income tax bracket?

What is the yield (in percentage points, 0 to 10 percent) on the municipal bond you are considering?

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Pro Fed Financial Advisors
4315 Flagstaff Cove • Fort Wayne, IN • 46815-4630
Phone: 260-486-7989 • Fax: 260-486-8262
• stroutner@profedadvisors.org

Securities and advisory services offered through Financial Network Investment Corporation, member FINRA, SIPC.

INVESTMENTS ARE:

NOT NCUA/NCUSIF INSURED, NOT GUARANTEED BY THE CREDIT UNION, NOT A DEPOSIT, NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY, MAY LOSE VALUE. 

The information on this website is intended for use only by residents of the states listed below. Securities related services may not be provided to individuals residing in any state not listed.  

We are licensed to sell Insurance Products in the following states: Indiana.

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Pro-Fed Financial Advisors, Inc. and Professional Federal Credit Union are not affiliated with FInancial Network Investment Corporation 

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